The market has recently rebounded from a key support level and has now surpassed the highs of 2020. The XAUUSD market is showing a consistent pattern of recovering from this particular level. I am closely watching for an opportunity where the market pulls back to this support level again. Specifically, I will be looking for a bar with a long tail. This type of bar often indicates that the market is rejecting further downward movement.
XAUUSD Context
I believe that the price is likely to rise. This belief stems from the market’s failure to continue falling after it broke below a previous low point. This scenario is commonly referred to as a “fake break.” It suggests that the bears, or those betting on the price going down, do not have sufficient strength to drive the price lower.
Looking at the market on a weekly timeframe, it appears that the price might retest the level at which it opened last week.
XAUUSD Trading Idea for 19 January 2024
My goal is to target the resistance zone which is currently situated around the 2045 mark.